When a corporation issues new stock, current stockholders may purchase additional shares before these shares are offered to the public.

Name: When a corporation issues new stock, current stockholders may purchase additional shares before these shares are offered to the public.
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This is known as preemptive rights, which allow current shareholders the opportunity to maintain their proportional ownership in the company by purchasing additional shares before they are offered to the public.

When a Corporation Issues New Stock, Current Stockholders May Purchase